Tasman Pacific directors win round one

By DANIEL RIORDAN

As Air New Zealand's immediate future lurched its way to resolution, directors of Tasman Pacific Airlines, the last local carrier to nosedive, were busy extricating themselves from million-dollar legal claims.

Seven past and present directors of the airline (which flew as Qantas NZ) each had two charges of not filing financial accounts against them dropped by the Companies Office after it accepted that the airline was less than 25 per cent foreign-owned at its balance date of June 30 last year.

But the seven - David Belcher, Kevin Doddrell, David Skeggs, Fred Watson, Ken Cowley, Trevor Farmer and Rob Campbell - still face three charges each, relating to their alleged failure to prepare signed accounts at all.

The directors say they are confident they can convince the Companies Office to drop the remaining charges.

The directors pleaded not guilty to all charges. The matter, before the Auckland District Court, next goes to a status hearing on December 4.

The charges, brought in June of this year, relate to the failure of Tasman Pacific and its sole shareholder, Zazu, to file last June's accounts on time (by December 31).

Each charge carried a potential penalty of up to $100,000 and followed the airline's collapse in April, leaving more than 1000 staff without jobs and creditors owed more than $100 million.

The charges were among the first to be brought under the Financial Reporting Act 1993, designed to ensure companies keep up-to-date financial records.

Under the act, unlisted companies such as Tasman Pacific must file results if they are more than 25 per cent foreign-owned.

Although Tasman Pacific's share register at June 30 last year showed that was the case, directors have convinced the Companies Office its foreign ownership was just under the threshold.

But because its share register was shoddily maintained the level of ownership was not properly recorded.

Australians, including Mr Cowley, Ken Parker and Kerry Stokes, owned 28.2 per cent of Tasman Pacific when the company bought Ansett NZ in April of last year, but Mr Cowley and Mr Parker sold some of their combined 6 per cent a month later.

How much of that combined stake was sold to local investors is unclear although it is known that Graeme Marsh of Dunedin bought half of it.

Brian Keene, the barrister representing five of the directors (Mr Farmer and Mr Campbell are represented by Richard Craddock, QC), said after yesterday's hearing that the company's management was to blame for failing to update the share register.

He also denied that accounts had not been prepared.

He said this had been done but they had not been signed off in time (five months after balance date of June 30).

It appears the auditors were not prepared to sign off the accounts.

"There are differences in technical requirements between the directors' obligations and preparing statements and signing them off, and auditors' obligations," said Mr Keene.

He said the remaining charges were "much less serious in nature".

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